Store roll-out tastes good for Crawshaw

BUTCHERY group Crawshaw today revealed plans to open new stores as trading continues to improve in 2010.

The stock market quoted Rotherham-based meat retailer today reported that sales for the year to January 3 increased by more than 18% to £19m from the previous year thanks to a number of store openings.

However, like for like sales were down 8% driven by customers switching to lower priced products as a result of the recession and a lack of footfall across the group’s established stores.

Gross profit increased by 20% to £8.2m but operating profit fell from £854,000 to £318,000, excluding exceptional items, as operating costs increased. Earnings before interest, tax, depreciation and amortisation were £800,000 compared to £1.1m the previous year.

Crawshaw reported pre-tax profits of £193,430, up from a loss of £845,746 the previous year.

Crawshaw reduced its net debt over the year to £900,000 from £2.7m, while cash generated by operating activities doubled to £600,000.

Chairman Richard Rose said Crawshaw was “delighted” customers had remained loyal during the downturn, despite spending less.

Mr Rose said the group took steps during the second half of the year to boost its offering, including re-profiling certain products and developing its hot food and deli offerings. 

Crawshaw has opened seven new stores since July 2008.

Mr Rose said a number of different sizes of store had been opened and assessed and that the group’s larger store format was the one “showing an outstanding performance”.

He said: “The higher footfall such stores command allow us to make a higher margin as wastage is reduced and staff can operate more efficiently.

“Being the most profitable, this is the model we would wish to roll out. The small and medium new stores are also contributing but it would clearly make sense to focus on the format that yields the greatest return.”

Mr Rose added: “The current financial year has started much more positively. Year to date trading, for both existing and new stores, for the 12 weeks to April 25 is ahead of budget, and with a rather higher gross margin than the start of last year, operating profit for the first two months of the year is significantly ahead of the first two months of last year.

“It is particularly pleasing that each one of our new stores is trading ahead of plan and this gives us confidence to start planning for further sites. 

“The search has commenced and we are confident that the lessons learned over the last 18 months of new store openings will provide an excellent foundation for our future expansion plans.

No dividend is proposed.